Electronic payment systems provider VeriFone Systems has closed its acquisition of Hypercom Corporation, after reaching a settlement with the US Department of Justice (DOJ).
The Justice Department reported that in order to complete the deal, VeriFone must divest Hypercom’s US payment systems business to the private equity firm Gores Group.
Under a DOJ filed civil antitrust lawsuit in May, the deal was supposed to reduce competition in the point-of-sale (POS) market and lead to higher prices and reduced innovation.
The two companies control more than 60% of the US market for payment terminals used by retailers to accept credit and debit cards, the US antitrust agency said.
VeriFone provides merchant-operated, consumer- facing and self-service payment systems for the financial, retail, hospitality, petroleum, government and healthcare vertical markets.
VeriFone said the Hypercom acquisition will let it to expand geographically, particularly overseas, and diversify its products and services.
VeriFone expects the acquired Hypercom assets will contribute to a non-GAAP revenue of $350m in the in fiscal year 2012.
In addition, immediately prior to the merger closing, Hypercom Corporation divested its UK and Spain businesses to a wholly owned subsidiary of KleinPartners Capital Corporation.
